With the Powerball jackpot drawing Wednesday night, all we can think about is the beginning of that O'Jays song.
“Money, money, money, money... Money!” Because there’s A LOT of it up for grabs.
The jackpot has reached $700 million.
The question is: How much of that would you take home with the winning numbers?
Don’t worry we (sort of) did the math.
Show me the money
So, you’ve just made a grab for the cash.
The gross prize for taking the lump-sum, according to usamega.com, is $443,300,000 – which is more than all but one pro-athlete's total salary.
But then, of course, there’s a federal tax.
Federal tax would subtract $110,825,000 from the gross payout. OK, not bad. There’s still about $332,475,000 left on the table.
But wait, there’s more.
Since you’re an Arizona resident there’s also state tax which would subtract another $22,165,000 from your prize money.
So after all of that your take-home money would be roughly $310,310,000. Which is still really good, but definitely a lot less than that $700,000,000 jackpot.
A non-Arizona resident, who purchased a ticket in the state, would take $305,877,000.
OK, OK what about the payments?
According to usamega.com, the Powerball annuity payout schedule equates to 30 annual payments. With a $700,000,000, the average payout per year would be $16,333,333 after federal and state taxes are taken out.
The payments are on an annually-increasing rate schedule – so they’ll increase as you move closer to that 30th payment.
Meaning, you’d basically have a multi-million dollar salary for the next 30 years for a total net prize of about $490,000,000.
You’d be like a CEO, you know, without all the pressure of actually having to run a company.
Again, non-Arizona resident, who purchased a ticket in the state, would take a little less at $483,000,000.
In comparison, our neighbors to the west, California, would have a net-annual payout of $525,000,000 and a lump-sum net of $332,475,000.
Time for the fun stuff
As the Wu-Tang Clan once said, “cash rules everything around me.” Too cliché?
Anyways, things cost money but since you have a lot of it, well you can probably afford just about everything you ever wanted.
Now that all the boring math is out of the way, the question on everyone’s mind (probably) is: What exactly could you do with all that cold-hard cash in Arizona?
OK, not exactly the most fun yet. But stick with us for a second – it’s probably the wiser choice of what’s to follow.
Cord Armstrong, a local tax expert, said he would first work to make winners understand that their winnings are taxable and then recommend a financial advisor.
“Whether to invest conservatively or aggressive would typically depend on their age,” Cord said, “but in today’s environment something like 4 to 6 percent is pretty good.”
Cord said depending on how much is won, there’s a good chance you could live off that kind of investment.
Disclaimer: Money doesn’t grow on trees and the following is just for fun.
A lifetime rising up with the Red Sea
You could literally purchase season tickets for the Arizona Cardinals for life – and generations to come. The most expensive season ticket price (not including playoffs), according to the Cardinals ticket-purchasing website, would run you $1,400 per ticket. Club seating pricing wasn’t listed, but you’d most likely have enough for those.
A Super Bowl LII ticket to U.S. Bank Stadium will cost you thousands. But that’s pocket change for you.
It’s heavily dependent on a ton of yet-to-be-determined factors, but SeatGreek says the “average” Super Bowl ticket costs anywhere from $2,500 to $3,000. So, in other words, you could take the entire family and all of your closest friends. Probably even some not-so-close ones too.
OR, even better, you’d have enough money to throw the most epic Super Bowl 52 party while you watch it on 12 News.
Speaking of staying home
They say the most important things for survival are water, food and shelter. I paraphrased that, but what I’m trying to say is, a “shelter” would be no problem for you.
You could buy a pretty big house in Arizona with this kind of cash – maybe two, possibly three.
Like Randy Johnson’s Paradise Valley estate with 25,0000 square-feet of living space and an awesome movie theater that’d give Harkins a run for its money. The last-known sale price was $19,995,000.
You could also purchase a 14,000,000-square-foot Paradise Valley mansion for $10.8 million.
Maybe a “Saguaro Sanctuary” for $5.2 million?
How would you like to live like Alicia Keys on Camelback Mountain for a cool $3 million?
If you’re look for quite the conversation piece, you could buy the “World’s tallest house" in Prescott and use it as a vacation home in northern Arizona.
Or you could just buy an Arizona team
A 2016 Forbes list ranked the Arizona Coyotes toward the bottom in the "business of hockey." The team's value was listed at $240 million. Meaning, you could purchase the team and call Gila River Arena your office -- for now.
Vacation like royalty
It’s called the “The Royal Penthouse” in Geneva. At $82,000 per night, you could afford to live there for an entire year.
Remember that rare and lost Jackson Pollock painting that was found in a Sun City garage?
Theoretically speaking, you could afford to cover your walls with paintings like that more than 100 times.
You get a college education, and you get a college education , and you…
To put this into perspective, Grand Canyon University will teach a record 19,000 students this year – 7,000 of which are incoming freshmen.
According to the school, the average campus student pays $8,600 per year.
You could pay tuition for the class of 2021 – with a rather large portion of your winnings.
Just trying to get from point A to B
Often referred to as one of the most powerful production cars, you could purchase a $1 million Bugatti for pretty much all your loved ones.
If you want to claim the window seat every single time you fly -- own the plane.
According to CNBC, an private jet or aircraft, depending on the size, could cost you anywhere from $700,000 to $4 million per year to run.
And while we’re at it, a 100-meter superyacht with crew and a top speed of 25 knots, on average, should cost around $275 million - according to Forbes.
What’s for lunch?
Last year, Gordon Ramsay had an (very roughly) estimated net worth of $60 million. So you could double his net worth and, if you’re nice to him, I’m sure he’d come cook for you.
Moral of the story: You could literally buy just about anything.
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